Mercedes Benz India is changing the way it will sell cars in India. It will directly sell its vehicles to customers with its dealerships facilitating the process with brand experience, displays in the showrooms, sales consultations and test drives.

Mercedes will set a single price all over the country, own and provide inventory and do the sales invoice for customers.

The new retail format will come into effect from the fourth quarter of 2021 and will be applicable for new cars, said Martin Schwenk, Mercedes Benz India CEO and managing director, at a digital press conference.

The company will be moving away from the traditional business model where Mercedes Benz India entered into wholesale agreements with dealers and did stock transfers to them. The dealers would then enter into retail agreement with the customers and hand over the vehicles.

With stocks being owned by Mercedes Benz India the company will have a centralised stock management with a decentralised vehicle storage at the dealers’ which are now “franchise partners”.